Essays on Gains tax

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... Gains Tax The following are the implications under the provisions of the Capital Gains Tax in respect of the proposed sale of the business by Peter:
1. Plant &Equipment:
Being a depreciable asset, there are special rules that apply to this class of asset. A depreciating asset is an asset that has a limited effective life and can reasonably be expected to decline in value over the time it is used. Plant and machinery is a depreciable asset used for business purpose.
The capital gain or capital loss resulting from a depreciable asset is subject to the taxation only to the extent the depreciable asset is used for a non-taxable purpose. For example if a depreciable asset is used for a private purpose t...

... Gains Tax Liability Case Study Word Count 544 Esteemed Client: I have been working in the Tax Services Division of DV Chartered Accountants for two years. It was brought to my attention that you needed some counsel on some rather important matters and I am here to now assist you. I took some notes regarding the meeting which I wish to share with you.
First of all, you own 50% of your property. This is equity. With equity you can do many things, such as make purchases against your equity. The fact that you have a house on the beach in Marmion also helps you in the sense that you completely own (jointly, I might add) a residence. This is not only valuable because you singularly own the property,...

... TAX ASSIGNMENT 2007/08 Case of Mr. Darling Letter addressed to Mr. Darling: Dear Mr. Darling Re: Impact of Budget for the year 2008 on your taxable income
We have made a review of the information provided by you on the status of your income and capital gains. For your review we have appended your income tax computation for the years 2007-08 and 2008-09. We write to advise you the following with respect to the applicability of the income tax and capital gains.
Capital Gains Tax
Major changes have been brought in the budget for the year 2008 in respect of the capital gains tax. The indexation allowance and taper relief which have so far been allowed are withdrawn and in that place a flat rate of 18 ...

... of Capital Gains Tax Proposals for 2008/09" The art of taxation consists in so plucking the goose as to obtain thelargest possible amount of feathers with the smallest possible amount of hissing.
- Jean Baptiste Colbert
Taxation can be described as the amount of money a firm or an individual pays to the government to ensure the proper functioning of the nation. The tax is levied on the income a person receives, profits an industry makes etc. Taxes are also imposed on services rendered, the the income acquired from the sale of an investment. The list oon taxable commodities and services depends upon the financial laws of a country. The minister in charge of the financial sector of governance submits ...

... Impact of Capital Gains Tax on Residential Property Investment Performance and Viability in AUSTRALIA Executive Summary Capital Gains Tax (CGT) in Australia applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home. Rollover provisions apply to some disposals, one of the most significant is transfers to beneficiaries on death, so that the CGT is not a quasi death duty.
CGT operates by having net gains treated as taxable income in the tax year an asset is sold or otherwise disposed of. If an asset is held for at least 1 year then any gain is first discounted by 50% for individual taxpayers, or by 33 1/3% for superannu...

... Taxation Law By Due Capital Gains Tax is a tax chargeable on capital gains. Capital gains are profits realized on disposal of capital assets. Capital assets are those assets that are not held for consumption. These assets include stocks, bonds or real estates. There has been a debate as to whether capital gains tax is a fair tax. Due to the complexities of the exemptions that are granted under the head of capital gains, it has often been expected that the taxpayers are likely to find many loopholes in the law and avoid tax. The rules regarding exemptions are such that rich people often find ways to avoid taxes by making investments in certain specified areas hence paying even less taxes than the...

... Capital gains tax Introduction The capital gains tax can be defined as a tax on the profits after one has sold or disposed of an asset after it has gained value. In other words, it is the gain that an individual makes which is taxed but not all the amount of money one receives (Grubel & Fraser Institute 2001). For example, when an individual buys a painting at 5000 USD and sells it later for 25000 USD. This means that this individual has made a gain of 20000 USD. The seller of this painting should pay tax for the 20000 USD gains which he or she has acquired as profit. It is worth noting that some assets are tax free and if one’s gains in a year become less than his or her tax-free allowance, the...

... Taxation Capital Gain on Sale of Boston Manor Plc Shares If one owned shares at 31st March of 1982, the market value of the shares on that day is employed in calculating the cost of the shares (HMRC.com, 2013). Bob and Isobel were holding shares at Boston Manor plc on 31st March of 1982. Thus, the cost of the shares and capital gain of the shares Bob and Isobel intends to sell is as computed below.
Number of shares = 8,000
Market value of share on 31.3.82 = £1.50
Cost of the shares = 8,000 * £1.50 = £12,000
Selling value of the shares = £80,000
Capital gain = £80,000 - £12,000 = £68,000
Thus, the capital gain tax payable that Bob and Isobel should expect from the sale of the shares is £68,000. Owing ...

... gains and losses Introduction For many years, the United s capital gains and losses have continued to be plagued by many tax issues. Mutual funds are characterized by many unfavorable tax rules. First, there are inefficiencies where capital losses are deducted, and capital gains realized on trades within mutual funds. Earnest & Young (2011) argues that the United States has one of the most complex tax systems in the world. In the United States, there is no value-added tax or stamp duty imposition. However, every person and organization is subject to income taxation. As a rule, income must be reported, and taxes calculated and paid.
Other than inventory items, companies may end up in selling other as...

... Deal Introduction The following brief discussion will focus on the current negotiations between the President and the White House, the executive branch of the government, and the Congress, the legislative branch of the government over taxation. It will also focus on negotiations within the legislative branch between the two houses, Senate and House of Representatives, and between the two parties, the Democrats and the Republicans.
Initially, the history of the issue and the diverse aspects of it will be summarized. Then the significance of this issue will be explored. The final, concluding section of the paper will offer an overview of the situation and consider the merits of the various positions an...

... Gains Tax The purpose of this essay is to critically examine what accounts for the disposal of an asset in relation to the Capital Gains tax. The essay initially describes the background of Capital Gains tax in terms of the proper definition for the chargeable person and the chargeable asset. Then it moves onto discuss the issues of the chargeable disposal, the exemptions and part disposals.
Thesis Statement and Research Methodology
The essay aims to discuss the factors that affect the disposal of an asset in relation to the Capital Gains Tax. For the purpose of research, I have analyzed and made use of many literature reviews.
Introduction
A company operating in a market has to undergo many process...

... Tax consultant Address: Telephone: Bella Address Telephone March 17, Dear MissBella,
Re: Review of your capital gains
Introduction
Following your request, that we offer you our tax consultant services, we are pleased to provide you with the underlying approach to our work and how your capital gains would be treated. Capital gains are the value increase of capital assets net of any incidental costs such as transaction costs and brokerage costs. If an asset’s value decreases, then, a capital loss is realized. In principle and under the income tax rules, capital gains are included in the tax base when they accrue. Capital gains will be taxed upon the disposal or realization of an asset. The Australian ...

... of Income Tax
Income tax is defined as the tax levied on the earnings of an entity or an individual; there are different types of taxes that paid to respective governments (Investopedia)
In the case of Thomas there are different taxes that he will have to pay to the government, the first step in calculating the tax liability is to calculate the taxable profit that Mr. Thomas has made from his business activities.
£
Net Profit as per the scenario 72,000
Less: Additional Income (Note 1) (7,700)
Add: Salary of Thomas (Note 2) 25,000
Add: Council Tax of Thomas’s house (Note 3) 2,000
Add: Replacement of house front door (Note 4) 850
Add: Patrol of car (1...

... a Capital Gains Tax be introduced in New Zealand? of the Introduction New Zealand is an isletcountry situated near south-western part of the Pacific Ocean. The country is comprised of several small islands. As the country is isolated by its surroundings of various islands and oceans, such remoteness is largely reflected in the demographics and economy of the New Zealand. The capital of New Zealand is Wellington and Auckland is the most populous city of the country. The population of the nation is approximately 4.5 million as per the estimates on June, 2014 in which 29% inhabitants are youth in age; thus ensuring a sound economic structure. In fact, the market economy of New Zealand is one of the...

... 17 July Question How does a firm’s tax rate affect its cost of capital? What is the effect of the flotation costs associated with a new security issue?
Cost of capital refers to the rate of return which compensates investors for their investments in a venture. It helps compensate for the time value of money and the risk associated with the investment. A company may use several types of capital to finance its activities; these can be broadly divided into debt (loans) and equity (shares). Based on the proportion of funding from each source, an organization can calculate its “weighted average cost of capital”, i.e. the average cost of capital for the organization based on the percentage of funding obta...

... ……………………………………………………………………………xxxxx ………………………………………………………………………xxxx …………………………………………………………………………….xxxxx …………………………………………………………………………xxxx @2012 Accounting Introduction The number of reported cases by the media with regard to tax avoidance and tax evasion has been very high. For instance, a report from National Audit Office indicates that HRMC has a backlog of 41,000 cases including individuals and small businesses. The government has made tax evasion and avoidance one of its key priorities so as to reduce the deficit and boost the exchequer (Alan 2011). Tax evasion is illegal way of minimizing taxes thus stiff penalties are involved on individual or corporate bodies who evade taxes. Unintentional...

... [INCOME TAXATION LAW] Part Problem Question Capital Gains Tax Implications on Sale of the Shoe Manufacturing Factory Premises A capital gain is the difference between the cost of asset acquisition and the proceeds realised from disposing the same asset1. Capital gains result from selling assets such as real estates and shares. Business goodwill also results into capital gains. There is no distinction between income on revenue account, which is referred to as business income and income on capital account, which is referred to as capital income. Any household required to pay tax on gains that result from disposition of financial and real property2. Whether the gains are speculative, from business...

... pages, 5 sources Corporation Tax According to Wikipedia, "Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident companies and associations that trade in the UK" (2007). The tax went into effect on April 1, 1965 and is roughly based on the income tax system, following the same fundamental structure, guidelines, and rules. Also according to Wikipedia, "Since 1997, the UK's Tax Law Rewrite Project has been modernizing the UK's tax legislation, starting with income tax, while the legislation imposing corporation tax has itself been amended; the rules...

... Business Taxation: Zing Zang Zong Case Study Introduction Ben Stone operates an incorporated business, Zing Zang Zong in providing website design consultancy services. The business was started on 6 April, 2005. Like many contemporary business entities, Zing Zang Zong has been affected adversely with the increased competition across industries and the economic recession. After making loss of $40,000 in the fiscal year that ended on 31 March 2011, the business entity was able to record improvement profitability within the fiscal year ending 31 March 2012. From the projections and forecasts of sales and profitability, there is evidence that the firm is likely to pay more tax of either 40% or 50%. While ...

... FINANCE James Webster Problem Many businesses have failed and individuals become bankrupt for simply not making adequate provisions for their taxation obligations. Nearly all financial decisions made in either business or personal life are affected by taxation. When a person is planning their budget, they must consider their taxation commitments along with rent, electricity and all other daily or monthly financial liabilities. Failure to do this will result in a financial debt that sometimes can grow to unmanageable levels.
Problem 2
Mohammed has a yearly income of $48000 and he must add to that his income of $1000 from his investment interest leaving a yearly income of $49000. He has tax...

... Introduction Taxation is the life blood of a nation. The concept of taxation is derived from the theory of protection and support, where the citizens give tax to the government in exchange for protection. Every country has its own taxation system which is evolving according the needs of time. The evolution of the taxation systems in the United Kingdom is evident in the many revisions of our tax law. There revisions in the law is mostly reflected in the changing tax rates, allowances and systems of collection. The three problems in this essay tackles different scenarios involving different transactions.
Problem 1
The first problem involving Ms. Vaughan involves a sale of a house giving rise to the pay...

... PART A a) i) The transfer of the business to Sonya involves the disposal of business to own child. It is a qualifying asset since it involves the transfer of shares in a family trading company. At the date of disposal, the father is 60 years of age, which is above the set limit of 55 years. The business has also been running for many years more than 10 years hence it is qualifying. In relation to Sonya, there is no consideration limit unless disposal on or after 1st January 2014 and then €3,000,000 limit apply to the business. Sonya must also retain the business for 6 years from the date of the original transfer.
Failure to retain it, it will expose Sonya to parents original CGT that was evaded b...

... Managing Director Finance Manager 25/07 Vehicles to Minimize Taxes I believe that tax planning is needed to reduce income tax now and in future and all the firms essentially require tax efficient financial planning. In this regard, I would like to identify some available mechanisms that could be used for minimizing of incomes tax, capital gains tax and estate tax. Currently many forms are making use of some remarkable vehicles to reduce taxation on their incomes. For example, whole life insurance is one of those vehicles which contract many tax benefits, i.e. if one doesn’t withdraw interest or gains, and then no income tax will be due-ever. Using charitable trusts is another way to reduce income...